City tries to find those who are owed, but former councilman questions how hard

Owed money?

Are the holidays leaving you a little short on money? You might want to check out San Diego’s listing of dollars the city owes to people who don’t know it.

The listing totals $147,000, including unclaimed deposits for water service, refunds to people who overpaid for city services, and money paid to vendors who never cashed the check. The average owed by the city is $171.

Unlike the county — which holds an annual news conference to publicize its unclaimed money — the city does nothing more than post the list on its Web site and run a legally-required newspaper notice.

Under state law, if nobody comes forward to claim the money after three years, it reverts to the government coffers.

According to the city comptroller’s office, over the past three years, more than $623,000 in unclaimed money has reverted to the city’s general fund. At the county this year, $517,000 went back to the general fund.

Larry Stirling, a former judge, legislator and San Diego City councilman who has advocated on the issue, said public agencies have a “perverse incentive” not to work hard at connecting people with their unclaimed money. The city earns and keeps the interest on the unclaimed money, but the county uses a non-interest-bearing account for the funds.

“If the checks are not cashed, they just keep the money. I think that’s just outrageous,” Stirling said.

The city’s unclaimed money database includes the names of many well-known companies or agencies. Among them: the San Diego County Sheriff’s Department, San Diego Gas & Electric, 24-Hour Fitness and the Federal Aviation Administration. The San Diego Union-Tribune is on the list for $495 — money the newspaper is now claiming.

Also in the database is Ron Saathoff, former head of the San Diego city firefighters union, who is being prosecuted for pension fraud. The database indicates he’s owed more than $5,000.

“It’s not like they can’t find him,” Stirling said. “It seems like somebody could just get on the phone and say there is five grand and come pick it up.”

Mayoral spokeswoman Rachel Laing said the city follows state law in how it handles unclaimed money. Entries are made in the database if a check sent to an address is returned because a company or individual has moved or if the recipient of the check fails to cash it within six months.

After three years, the city must publish a legal notice in a newspaper letting creditors know they have 45 days to claim the money or else it will go to the public coffer. If the amounts involved are less than $15, the city is not obligated to include them in the legal notice.

Of all the unclaimed money posted on the city Web site, the comptroller’s office estimates 54 percent is eventually recovered by the rightful owners.

County treasurer-tax collector Dan McAllister said his office makes a concerted effort each year to return the money.